from the hip

The Norwegian shipping magnate and multi billionaire John Fredriksen, the owner of several billion dollar shipping and oil rig companies, is canceling 4 chemical tankers ordered at the Alcock Ashdown yards in India. These tankers were ordered by Fredriksen’s daughters Kathrine and Cecilie.

The Fredriksen controlled oil drilling company Seadrill is also negotiating cancellation of four floating oil rigs, valued at 850 million dollars, with the Keppel Fels & PPL yards in Singapore. As well, Fredriksen’s Golden Ocean is negotiating cancellations of some of its ordered ships at yards in China and South Korea.

There is no indication that Fredriksen’s businesses is suffering more than other businesses due to the current crisis. Rather it is assumed that the cancellations reflect Fredriksen’s view that the next few years may be somewhat tougher than the previous years in shipping.

The Norwegian shipping magnate John Fedriksen is involved in a fight for control over the US oil rig company Pride. Self-made Norwegian shipping tycoon John Fredriksen has made another move in the rig market. His rig corporation, Seadrill, snatched up 10 percent in American competitor Pride.

Fredriksen is known as a tough businessman, and one of his specialties have been asset play. With the international market for oil rigs in the process of heating up, and with prices hitting record levels recently, this recent play from Fredriksen seems to make sense. But he is also building up an empire of companies worldwide, most of them involved in shipping and oil.

Houston-based Pride International, is worth about USD 6,8bn, while Seadrill has a market value of about USD 12,5 billion. Aftenposten (Norway) brings the following comment:

“Seadrill has had the ambition to become the world’s largest rig company,” said analyst Kjetil Bakken in Fondsfinance to E24.

“If they are successful in buying Pride, they’ve come further. A merged company would become the second largest in the world, ahead of Diamond and after Transocean,” said Bakken.

Reuters writes that Seadrill views the share purchase in Pride as a financial investment.

Seadrill declined to comment on whether the move was a step towards a takeover of Pride.